The Iranian oil minister said President Hassan Rouhani on Tuesday will officially propose a new plan for oil and gas cooperation in the Caspian Sea to his Azerbaijani counterpart.

In time with Tuesday’s visit of Azerbaijani President Ilham Aliyev to Tehran, Iran will present to Azerbaijan an offer for participation in the exploitation and swap of oil and gas fields in the Caspian Sea, according to Mehr News Agency of Iran.

Tehran’s proposals to Baku include cooperation of the two countries for joint implementation of oil and gas fields in the Caspian Sea as well as expansion of oil and gas trade particularly pertaining to resumption of oil swaps, reported  Haqqin.az news agency of Azerbaijan.

Iranian Oil Minister Bijan Zanganeh expressed readiness for swap of crude and natural gas with Azerbaijan noting “with the visit of President Aliyev of Azerbaijan, negotiation will be conducted between the two countries at the high political levels.”

“The proposals will be raised during the upcoming meeting between the two countries’ heads of states,” he reiterated.

Zanganeh further stressed that “costs of oil production in the Caspian Sea are extremely high for Iran and some neighboring countries; cooperation among Caspian littoral states would reduce production and transfer expenses.”